Volatility within the inventory market is usually seen as a danger to be averted by cautious traders. Nonetheless, for individuals who perceive it, volatility can current alternatives for revenue. Vital worth fluctuations could be leveraged with the fitting methods. When reviewing the present market, Reed’s Inc. OTCMKTS: REED and Oil States Worldwide NYSE: OIS are examples of shares exhibiting excessive volatility.
These firms are from totally different sectors, however they exhibit the dynamic worth actions that attraction to merchants trying to capitalize on market swings. With a concentrate on danger administration, traders can leverage focused buying and selling methods to probably revenue from unstable shares.
Reed’s Firm-Pushed Volatility
Reed’s Immediately$1.38 +0.03 (+2.37%) As of 03/3/2025 03:55 PM Eastern52-Week Vary$0.51▼$2.42
Reed’s Inc. (REED) is a participant within the pure beverage sector, and the corporate operates as a micro-capitalization inventory traded on the OTC market. This mix inherently predisposes it to a better diploma of volatility in comparison with large-cap, extra established equities. Analyzing its 52-week buying and selling vary, from a low of $0.51 to a excessive of $2.42, instantly reveals the magnitude of worth fluctuation skilled inside a single yr. Latest buying and selling information additional exemplifies this erratic conduct.
For instance, on February 24, 2025, Reed’s inventory worth surged by a formidable 15.56%, solely to be adopted by a decline of 8.50% simply two buying and selling days afterward February 26, 2025. Such dramatic each day proportion adjustments will not be unusual for REED, underscoring its unpredictable worth motion.
Including to this volatility is the low common buying and selling quantity sometimes noticed for Reed’s inventory. Decrease liquidity can amplify worth actions, as fewer shares being traded can result in bigger proportion swings in response to purchase or promote orders.
Reed’s inventory is very unstable attributable to a number of components. Firm-specific information, equivalent to current earnings reviews for Q3 2024 exhibiting declining gross sales and working losses, management adjustments, and monetary well being updates, could cause speedy worth changes.
The speculative nature of micro-cap shares, typically pushed by sentiment and momentum, amplifies these fluctuations. Restricted analyst protection may also affect the inventory’s conduct, making it prone to vital and unpredictable worth swings.
Oil States and Exterior Volatility Drivers
Oil States Worldwide TodayOISOil States Worldwide$5.07 -0.37 (-6.80%) As of 03/3/2025 03:59 PM Eastern52-Week Vary$3.91▼$6.53Price Goal$6.50
Oil States Worldwide (OIS) is a mid-cap firm working within the vitality sector. In distinction to Reed’s, OIS is a mid-cap firm working inside the vitality sector. Oil States’ beta of two.62 signifies that its inventory worth is considerably extra unstable than the general market. Because of this for each 1% change within the S&P 500, Oil State’s inventory worth is more likely to change 2.62% in the identical route. Nonetheless, throughout market downturns, OIS may also expertise amplified losses. 
Though Oil States is a bigger and extra established firm, it’s nonetheless topic to vital volatility attributable to industry-specific components and broader market sensitivity. Latest worth motion displays this heightened volatility. On February 24, 2025, Oil States’ inventory worth jumped by 13.5%, demonstrating its capability for speedy upward motion.
Analyzing each day buying and selling information reveals constant worth fluctuations, though maybe much less erratic than Reed’s on a day-to-day proportion foundation. The typical buying and selling quantity for OIS is considerably increased than REED, indicating larger liquidity. Nonetheless, this elevated liquidity doesn’t insulate it from volatility; as a substitute, it facilitates extra vital swings in absolute greenback phrases as extra shares change fingers.
Oil States’ volatility is primarily attributed to the vitality sector’s inherent cyclicality. The sector’s efficiency is tied to fluctuations in oil costs, world financial situations, and geopolitical occasions. Any shifts in these macroeconomic components can rapidly translate into vital worth actions for vitality shares like OIS. 

Victory from Volatility: Methods to Capitalize
Buyers can use particular buying and selling methods to benefit from unstable markets and worth swings. These methods may help convert market fluctuations into earnings and could be utilized to unstable shares in a number of methods.
Earnings Uncertainty: The REED Straddle Technique
The straddle choices technique is well-suited for unstable shares like Reed’s, the place a major worth motion is anticipated, however the route is unsure. This technique includes shopping for a name and a put choice with the identical strike worth (close to the present market worth) and an expiration date shortly after a serious occasion, equivalent to an earnings announcement. If the inventory worth strikes considerably after the occasion, one of many choices will revenue, probably offsetting the price of each and leading to a web acquire.
Wider Nets, Greater Beneficial properties: The OIS Strangle Play
Like a straddle, the strangle technique targets vital worth volatility however makes use of out-of-the-money choices. For Oil States, a strangle could possibly be used when anticipating a major vitality sector transfer, maybe attributable to OPEC conferences or shifts in oil demand. A dealer may purchase a name choice with a strike worth above OIS’s present worth and a put choice with a strike worth beneath, with the identical expiration. Cheaper than a straddle, a strangle earnings if Oil States’ worth strikes considerably past both strike worth.
Draw back Insurance coverage: The OIS Protecting Put Technique
Lengthy-term Oil States holders involved about downturns can use protecting places for draw back protection. Shopping for put choices on OIS whereas proudly owning the inventory acts as insurance coverage. If Oil States’ worth falls, put choice beneficial properties offset inventory losses, limiting draw back. The put choice premium is the price of this safety.
Swing Buying and selling REED: Catching the Quick-Time period Waves
On account of its frequent worth swings inside a particular vary, swing merchants can revenue from Reed’s inventory. By figuring out assist and resistance ranges, merchants can purchase close to assist (e.g., $1.00) and promote close to resistance (e.g., $1.40) to seize short-term worth actions. Nonetheless, this technique requires lively chart monitoring.
Taming the Turbulence: Threat Administration 
Managing danger is essential when buying and selling unstable shares. Implementing instruments equivalent to stop-loss orders may help restrict the draw back throughout unstable market swings. Moreover, using correct place sizing by taking smaller positions in unstable shares helps handle capital in danger per commerce. Diversifying your portfolio can additional mitigate danger by stopping overconcentration in unstable shares and balancing with much less dangerous property. These danger administration methods are important for navigating the inventory market’s inherent volatility.
Reed’s and Oil States exhibit that volatility provides substantial danger and vital alternative. Each shares expertise substantial worth swings, pushed by distinctive catalysts. With an intensive understanding of those catalysts, focused methods, and danger administration, traders can probably leverage market fluctuations to generate revenue.Earlier than you contemplate Oil States Worldwide, you will wish to hear this.MarketBeat retains monitor of Wall Avenue’s top-rated and finest performing analysis analysts and the shares they suggest to their shoppers every day. MarketBeat has recognized the 5 shares that high analysts are quietly whispering to their shoppers to purchase now earlier than the broader market catches on… and Oil States Worldwide wasn’t on the record.View The 5 Shares Right here Which shares are hedge funds and endowments shopping for in immediately’s market? Enter your electronic mail handle and we’ll ship you MarketBeat’s record of 13 shares that institutional traders are shopping for now.Get This Free Report